Sumitomo Mitsui Banking is discussing an equity interest increase in Vietnam Prosperity Joint-Stock Commercial Bank (HOSE:VPB), or VPBank, to 20% from 15%, Reuters reported, citing four sources with knowledge of the negotiations.

The parties have been talking for months but have not agreed over the valuation, although they aim to finalize the deal this year, the report cited some of the sources as saying.

The banking arm of Sumitomo Mitsui Financial Group (TYO:8316) looks to have a simpler entry-point to the Vietnamese market, including insurance and credit, through the shareholding increase, one of the news outlet's sources said.

Sumitomo Mitsui Banking and VPBank did not immediately respond to MT Newswires' request for comment.

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